Eurodollars
US dollar deposits held in banks outside the United States.
In plain English
US dollar deposits held in banks outside the United States.
Eurodollars are just dollars sitting in a bank account outside the US, whether in London, Singapore or the Cayman Islands. The name has nothing to do with the euro; it dates to the 1950s, when the market grew up in Europe.
This offshore dollar system is enormous, and it is why global dollar shortages can hit banks far from America, prompting the Fed to open swap lines.
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